INSURER SUES BOSTON CHURCH:

Lumbermens Mutual Casualty Co., accused by the Archdiocese of Boston of failing to cover payments to priest abuse victims, has filed a counter suit, claiming it should not have to cover damages from crimes. The Kemper affiliate insisted in a U.S. District Court filing that its policy covering the Roman Catholic archdiocese was for accidental injuries, not “intentional criminal conduct of priests who committed acts of sexual abuse against minors” and that the church should be required to reimburse it for sums it had already paid to settle complaints filed by victims of clergy sexual abuse. Last September, after the archdiocese agreed to pay $85 million to 552 victims of clergy abuse, Lumbermens wrote to Archbishop Sean P. O’Malley stating that the settlement was a “voluntary payment” and that the insurer was not obligated to contribute to the settlement. The church sued, asking a judge to rule that Lumbermens had a duty to defend and indemnify the archdiocese for sexual abuse claims between 1964 and March 31, 1983, with no limit on the total that could be paid out. The archdiocese claims that Lumbermens is responsible for $59.3 million relating to periods when it was the church’s sole insurer. An additional $7.7 million arises from periods when Lumbermens’ coverage overlapped with another insurer. In its counterclaim, Lumbermens denied the archdiocese’s allegations and argued that it doesn’t owe the archdiocese any money. (Associated Press)

Topics Lawsuits Carriers Church